1.What is the price of a 20-year bond paying 7 % annual coupons with a face (par) value of $1,000 if an 20-year bond making semi-annual payments and paying 7 % sells at par? Answer to the nearest cent, xxx.xx and enter without the dollar sign.

2.Suppose the interest rate on a 1-year T-bond is 6.3 % and that on a 3 year T-bond is 7.3 %.

Assuming the pure expectations theory is correct, what is the market's forecast for 2-year rates 1 year from now?

Enter your answer as a percentage and do not use the % symbol.

3.What is the price of a 19-year bond paying 6.1 % annual coupons with a face (par) value of $1,000 if the market rates for these bonds are 8.9 %? Answer to the nearest cent, xxx.xx and enter without the dollar sign.